What to Consider in Retirement Planning

retirement moneyMost people dream of the day they can retire. The problem is that many do not move beyond dreaming to planning. Planning can be done no matter what your age, but experts encourage people to start as early as possible. Retirement planning can seem like a daunting endeavor for many people as they focus on day-to-day financial obligations. Many people have no idea where to start. A few simple questions can help people of any age plan for retirement.

What does retirement look like to you?

This is an essential question to ask when beginning to plan for retirement. A good starting place is to start jotting down your ideas and, if married, your spouse’s ideas for retirement. Maybe travel is in your plan. If not travel, then how do you plan to spend your time? Will you want to downsize your home? Many people find that the home where they raised their family is too large or more than they wish to maintain. Will you continue working? If so, how much do you wish to work. Part-time or contract work can give more flexibility while still providing a source of extra income.

What assets do you have?

This is the beginning of financial planning for retirement. Look not just at your bank account and retirement accounts, but also property you own. Other assets to consider are collections that have significant financial value. Also, take stock of other investments that will be used to fund your retirement.

How is your health?

Personal health can play a large factor in retirement planning. The first step is to make sure you are up to date on all of your health screenings and check-ups. Once your health has been evaluated, you can better assess your plans for retirement. Health can affect finances and quality of life in retirement. There is no better time than the present to evaluate lifestyle and, if necessary, improve health habits to improve your quality of life and extend it.

When should you take social security?

There is no easy answer to this question and it is really a case-by-case decision that an attorney or financial professional can help you make. In the most basic terms, waiting longer to take benefits will increase the monthly benefits you receive. However, for many, this is not an option. It is important to assess your expenses and make the most informed decision possible with help from informed professionals.

How can I cut expenses to save more?

This is an excellent question for people of any age to consider. Cutting expenses can provide for extra savings to throw into your retirement plan. Cutting expenses can also help when creating a budget for retirement. If you can cut in some categories, then you can reallocate to other categories in order to be able to live more comfortably in the future. Paying off debt also becomes more manageable when other expenses can be cut.

How do I need to plan for the unexpected?

There is never any guarantee that the retirement you plan becomes reality. Many unexpected events can and will arise in retirement. These events can put a financial strain on a family, so it is important to plan a contingency for these events. This also good time to talk family and think about future care needs. Good health today does not guarantee it in the future – in fact, the possibility of needing long term care increases with each year we grow older. Creating a plan that includes legal and financial considerations helps get all family members on the same page and can greatly reduce stress should the unexpected occur.

Considering these questions can help you to begin working on a retirement plan that will fit your needs in the future.  An attorney can also help you with the legal side of planning for retirement, especially when considering the possibility of needing long term care in the future. The destination (retirement) is easier when the roadmap is clear and you have a plan for bumps in the road.

If you have any questions about something you have read or would like additional information, please feel free to contact us at 267-588-2765.

 

Choosing the Right Trustee

Choosing the Right Trustee

When planning for your loved ones’ future, you may consider creating a trust to protect assets set aside for them. If you create a trust, you will need a reliable and trustworthy person to name as the trustee who will manage the trust. Choosing the correct trustee is an important decision because he or she will be responsible for carrying out your wishes when managing the trust.

The trustee will be responsible for duties such as managing investments, paying bills, preparing tax returns, and managing other accounts within the trust.

Before choosing a trustee, consider the following points that will help you determine who will be best suited for the role.

1. A trustee must be over the age of eighteen and capable of managing his or her own affairs successfully.

2. The trustee should be completely trustworthy and committed to the beneficiary’s best interests.

3. The trustee should be able to make sound judgments and have a strong understanding of his or her duties as the trustee. While not required, legal or financial expertise is valuable.

4.  If a person is going to be the trustee of a special needs trust, knowledge of public benefits and how to avoid invalidating these benefits is beneficial.

5. The trustee should be someone who is healthy and will be able to continue managing your trust for many years to come.

6.  A trustee should have the time to devote to managing your trust effectively. If the person you are considering is very busy, you should consider other candidates before making your final choice.

7.  If you don’t know someone who would be a suitable trustee, consider hiring a professional trustee or institution to manage your trust. Professional trustees may include a trust company, accountant, lawyer, or investment manager or advisor. However, professional trustees or institutions do charge a fee or percentage to manage your trust.

8.  Consider co-trustees if you would like to have a trusted friend or family member and a professional trustee manage your trust together.

9.  Understand your family dynamics when selecting a trustee. If you are choosing a family member to be the trustee, try to avoid conflicts between family members and explain to other relatives why you have chosen a particular person to be the trustee.

10. If you make a relative or friend your trustee, decide who will be the successor in the event that the person is no longer able to manage your trust.

After you have chosen a trustee, it is advisable to reexamine your choice every few years to ensure that your trustee is still the best choice for your needs. If circumstances change, you may need to assign a different trustee who is better suited to the required responsibilities.

If you need assistance preparing a trust or choosing the right trustee, contact Newman Elder Law. If you want to learn more about our elder law services, click here.

Source:

http://www.elderlawanswers.com/how-to-choose-a-trustee-15384

When Best Laid Plans Go Astray

When most people plan for their senior years, they mostly think about a will that specifies how their assets will be distributed upon their death.

But there are other things to think about as well, such as what will happen if you have a stroke, develop a serious illness or become incapacitated?

What should you or your loved ones have in place in those circumstances?

It is extremely important to consider and plan for serious illness, not just death. While we are living longer, that doesn’t always mean we are living healthier. Stroke, complications from diabetes or osteoporosis can lead to nursing home placement. A legal plan must be established with the help of an elder law attorney when a person is healthy so that a difficult situation doesn’t become more difficult when illness or incapacitation occur.

Here are some suggestions for how you can plan ahead for serious illness:

Continue Reading When Best Laid Plans Go Astray

5 Things to Consider When Writing Your Will

Facing your own mortality is difficult, but don’t let the anxiety of what is to come stop you from planning for the future. The most basic part of your estate plan is a will that identifies your fiduciary or executor and what should be done with your assets after your death.

A thorough will can ensure that your assets are used and distributed to the correct people or organizations and reduce any legal and family strife.

Once you have decided to create a will, keep these five things in mind:

Continue Reading 5 Things to Consider When Writing Your Will

How to Help When Your Parents Lose a Life Partner

 

Lonely old man staring out of a windowIf your parent loses a mate, spouse or life partner, he or she may need a good deal of emotional and practical support. If you are close to your parent’s mate you may need support too. Family members, friends, neighbors and even grief groups are all good places to turn to for comfort during this time. Here are some tasks and decisions you may need to help your parent face.

Dealing with Property
In some circumstances, your parent will have to act as executor in dealing with their mate’s estate and there may be a lot to do. You may need to help with such things as sorting through their records for a will or collecting insurance and other benefits. Take it one step at time and know that there are always resources to help you and your parent out. Continue Reading How to Help When Your Parents Lose a Life Partner

The Basics of Guardianship

Guardianship is a legal tool that grants a parent or other adult the authority to make legal decisions for a child or legally disabled adult.

There are different types of guardianship:

  • Guardianship of Estate – where the guardian is responsible for financial and estate matters only
  • Guardianship of Person –  where the guardian is responsible for non-financial decision making
  • Plenary Guardianship of Person and Estate – which entails full guardianship of person and estate

Each type of guardianship can also be in the form of limited guardianship which means the court can choose to let an incapacitated person retain any rights he/she is capable of exercising on his/her own. There is also something called co-guardianship which can be of person, estate or both when two people share the decision making responsibility equally. Continue Reading The Basics of Guardianship

What happens to your Facebook account when you die?

Facebook login screenSocial media sites like Facebook and Twitter are a great tool for helping you post updates, photos, even video, so that you can keep up with friends and family. But what happens to your social media accounts when you die and you are the only one who knows the password(s)?

Most people have a plan for what to do with physical items and assets after death, but what about online accounts like social media sites and emails? What happens to them when you die? No one knows how long our online presence will last, and it is possible for someone to hijack your identity after your death based upon information they obtain online. Therefore, if you want to prevent online identity theft and have your online legacy reflect your wishes, you need to have a plan in place.

Continue Reading What happens to your Facebook account when you die?